Novo Nordisk, the pharmaceutical company behind Ozempic and the adjacent medication Wegovy, has announced plans to lay off a significant number of workers amid growing competition in the weight-loss space.
On Wednesday, the Danish drugmaker said it would be cutting about 9,000 positions, including 5,000 in Denmark, equating to just over 11 percent of its 78,400-strong workforce. Novo Nordisk estimates that the move will deliver about 8 billion krone ($1.3 billion) in yearly savings by the end of 2026.
Why It Matters
Novo Nordisk has secured a dominant position in the obesity drug market, with its product Ozempic having become synonymous with medical weight loss in recent years thanks in part to celebrity adoption and endorsements. However, the company has recently reported financial difficulties as rising competition from rival drugmakers threatens its hold in the market.
What To Know
In its most recent half-year results, Novo Nordisk reported solid sales growth for its Wegovy and Ozempic products, the latter originally intended as a treatment for type 2 diabetes.
However, “lower growth expectations” for both drugs prompted the company to lower its sales and profit guidance for the remainder of 2025. Novo Nordisk now anticipates full-year sales growth of 8 to 14 percent, down from a previous target of 13 to 21 percent, and an operating profit growth of 10 to 16 percent, down from 16 to 24 percent—both at constant exchange rates.
Novo Nordisk cited “slower-than-expected market expansion and competition” among the reasons for the downward revision, and outgoing CEO Lars Fruergaard Jorgensen told Danish broadcaster DR that the company might not be able to avoid layoffs given the challenges it faced.
On Wednesday, the company said layoffs were necessary to “to simplify its organization, improve the speed of decision-making, and reallocate resources toward the company’s growth opportunities in diabetes and obesity.” Novo Nordisk also noted the challenge of competing in a “more dynamic and consumer-driven obesity market.”
The company’s weight-loss treatments have faced competition in recent months from U.S.-based rival Eli Lilly, which recently raised the price of its Mounjaro jab in the U.K. Other drugmakers, such as Amgen and Roche, are in the process of rolling out similar treatments that could further diminish Novo Nordisk’s share of the obesity market.
What People Are Saying
Mike Doustdar, the president and CEO of Novo Nordisk, said: “As the global leader in obesity and diabetes, Novo Nordisk delivers life-changing products for patients worldwide. But our markets are evolving, particularly in obesity, as it has become more competitive and consumer-driven. Our company must evolve as well. This means instilling an increased performance-based culture, deploying our resources ever more effectively, and prioritizing investment where it will have the most impact—behind our leading therapy areas.”
What Happens Next
Novo Nordisk said the cuts would begin immediately, and spokesperson Ambre James-Brown told Newsweek that the precise timeline for their completion would vary “from country to country based on local labor laws.”
She added, “Our focus will be on handling this process with transparency and care, while supporting all impacted employees along the way.”
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